Surge in values pushes up commerical property returns

Saturday 21 August 2004

Commercial property owners have seen the highest potential return on their investments in 10 years - 14 per cent in 2003 - driven by a surge in property values.

By The Landlord

The latest figures from the Property Council of New Zealand's Investment Performance Index survey show commercial property investors had received a potential average return of 14.04 per cent in the year to June 2004, well up on 10.8 per cent the year before.

Though the income returns from commercial properties remained largely the same, it was capital gains that pushed up returns, survey showed.

The investment performance index is made up from information from analysis of 273 properties with a combined value of more than $4.5 billion.


Council research manager Andrew Downing said the capital appreciation was welcome news after the fall of commercial property values from late 1998 to early 2003.

Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer